GenMark Diagnostics Inc. is exploring a sale after the U.S. firm was approached by potential buyers, according to people familiar with the matter.
GenMark is working with a financial adviser as it fields interest from other medical diagnostics companies, the people said, asking not to be identified because the deliberations are private.
Shares in GenMark have climbed more than 15% this year, giving the company a market value of about $1.2 billion.
Deliberations are at an early stage and the company could still decide against a sale, the people said. A representative for Carlsbad, California-based GenMark declined to comment.
GenMark competes with companies including Hologic Inc. and Quidel Corp. in the booming medical testing industry. It makes molecular diagnostic equipment to help detect infectious diseases including respiratory pathogens, and for blood culture identification.
The company’s respiratory pathogen panels help identify the most common viral and bacterial organisms linked to upper respiratory infections, including the virus that causes Covid-19, according to its website. GenMark said last month it expects to report revenue of about $171 million for 2020, a 95% increase over the previous year.
Fidelity Investments, BlackRock Inc. and Vanguard Group are among its top shareholders, according to data compiled by Bloomberg.
A sale of GenMark could add to a wave of dealmaking activity among diagnostics companies, which have benefitted from the surge in demand for Covid-19 testing. Quidel is weighing a combination with Qiagen NV, Bloomberg News reported this week. Last month, Thermo Fisher Scientific Inc. agreed to acquire Mesa Biotech, a privately-held molecular diagnostic company, for about $450 million in cash.
https://www.bloomberg.com/news/articles/2021-02-11/u-s-diagnostics-firm-genmark-said-to-explore-sale-amid-interest